Sheldon's comments: (1) Built early & aggressively on scale & diversity and both are unique. Accentuates mass market and allows us to stay fully committed & returning cash to shareholders. (2) Retail model held up well. Been able to monetize it. Singapore mkt up 65% from 2014. Sands China up sequentially. Revenue share 24% of Macau mkt. (3) Sees signs of stabilization. Diversity & attractions benefited us. Market of peak periods mean more than ever before (Fri - Sun). People like geographical theme. (4) Hotel occupancy 85% or +5% over WHOLE market. (5) $200 million in savings over 2014. (6) 13,000 hotel rooms in 4 inter-connected resorts (includes 2 new casinos to open); 4 shopping malls with potential to add 700 more stores; convention centers; all time quarterly record in Singapore in U.S. dollars. (7) Dividend increase of 10.8% for calendar year 2016. Committed to divi's and share buybacks; bought $80 million in stock for qtr.; and looking forward to increasing both. (8) depth & strength in mgmt. We stay disciplined and continuing strategy, (9) cutting costs & will continue to do so as much as possible. (10) strong cash flow. Dividend increase is based on confidence in future growth. (11) We are guests of Macau (privilege to be there) and NOT our right. We are always mentioned as the casino most admired by officials there. Do whatever 'they' tell us to do. Also, discusses
premium mkt. vs. mass market. That will take another blog. In short, very positive. WYNN never mentioned. Completely different conference call vs. Steve Wynn's. Sheldon is BEST OF BREED.
Sentiment: Strong Buy
Adelson opens conference talking dividends and increasing them. (1) Adelson concentrating on MASS MARKET. VIP gambling affected with crackdown but mass market doing great. LVS has increased its's share in Macau from 21% to 28.5% in the past 2 months. He thinks mass market will improve because the 1.3 BILLION
Chinese is a culture embedded in CHANCE TAKING. Additional properties will be based on SUPPLY creating DEMAND. (2) LVS focusing on other countries for expanses (i.e. Japan, Korea, Indonesia). He says 1 property there equals 2 or more properties in China. He cites Japan with 2 casinos could generate $40 billion in revenues. (3) He talked about his CEO role in Macau. He wants people to report to him and not the board. (4) Focusing on non-gaming business. 90% of business will be non-gaming. Has presented plans to Chinese for
TROPICAL GARDEN, a 1 MILLION sq.' retail with condos, etc. Says Parisian Macau will equal or surpass
Venetian. (5) VISAS - no talk about limiting them (6) Smoking ban - thinks smoking will still be allowed.
(7) Sheldon + board loves dividends and buybacks. Plans to increase divi's by 10% each for the next 2 years
and, hopefully, beyond. $2 billion buyback authorized couple qtrs. ago and will be used. (8) has great loan capacity to expand/develop with int. rate below 2%. Financing readily available. (9) Focus on new properties in other countries featuring entertainment (retail, restaurants, entertainment, condos, and gaming). Good interview by Bernstein gaming analyst.
Sentiment: Strong Buy
I listened to the last 2 quarterly report calls which Adelson was present on both.
He repeated many times how the dividend was safe and it was being paid out of positive cash flow which is solid. He further stated that he intends to RAISE the dividend 10% EACH of the next several years. The company is unlike other casino companies because of its diversification. It is heavy into lodging, shopping, entertainment, restaurants and gaming.
It's business is focused on the MASS MARKET. It's VIP segment is very small compared to other casino companies. Its properties attracts ALL tourists.
He's big on dividends and will increase them going forward (at least 10% for each year for the next 3 years and, hopefully, beyond). He is optimistic that the company will achieve new markets in which he says "you mention who is in the running if new market is opened and we are always #1 mentioned". He says "any new additional market will distinguish us from any other gaming company if it is awarded to us". The bridge is expected to open sometime in 2017 which will allow Hong Kong residents and other to get to Macau in 30 minutes giving a real boost to Macau. The company is looking at the REIT situation but is dependent on several conditions.
Since 2006 when the company went public Adelson and family have NOT sold a single share which exhibits their confidence in the company. He has no plans to sell shares going forward. Says he is very confident about Las Vegas going forward. Adelson is the right guy for us shareholders. He is a majority shareholder and, like us, wants as much revenues shared by the shareholders. Dividends, share buybacks, and reinvestment in the company is paramount. Adelson owns about 50% of outstanding shares. His MONEY is where his MOUTH is.
This company is the 'best of breed' in it class. I for one am delighted he is our CEO!
Many of you guys post with no facts. Unless things drastically changed in the last 3 months the company has plenty of cash flow to cover the current divi. Now I will quote Adelson (and he should know because he not only owns 65 MILLION shares of the company but developed it and is CEO): "We have enormous cash flow to cover not only dividends but buybacks. We are the best in the business. We target the MASS market. We not only offer gaming but restaurants, entertainment, lodging, and shopping. We don't make mistakes.
Even when other casinos become crowded on weekends they flock to us because of our diversity. And we will INCREASE the divi at least 10% per year for the next 3 YEARS."
Now I got this off the last 2 earnings reports with analysts. I listened to all of it. Where the heck were you? Probably playing somewhere. I QUOTE FACTS. Why don't you try the same and not just bloating to support your short position. This action lately is a huge over-reaction to Macau. Slowing, yes, but it is NOT a ghost town. The MASS market is still strong. And that is the focus for this company. Have a nice day!
Tony does disrupt this board but multiply that by two people..Everybody hates has an agenda.. He wants people who come to this board to join the free forum board..Good board but he has no more credibility than the people he condemns Tony because he adds nothing to Yahoo..
This board used to be great until a deranged drugged out Asian named tony began posting hate messages all day long. He posts hundreds of them every week and most of us do not bother even checking the board anymore.
I think appointing a Chinese person in Macao is a vey good move on part of Sheldon. With experience in business and mainland Chinese government, he has what it need to cater to mainland China and Macao politics.
Evolution has changed some primates , over eons , to humans.
Some remain in trees.
Starting in June, comps will look increasingly good going forward. Throw in the new bridge completion and possible Japan license - and this could hit $150 within two years. And all the while - getting paid a hefty dividend to wait for it to pan out.
Highlights of the conference call: (1) Highest market share in Macau since 2009; (2) continue to grow going forward; (3) dividends will INCREASE in the years ahead; (4) growing sequentially; (5) despite strong dollar & gov't restrictions still had solid growth quarter; (6) highest standards in industry; (7) remain committed to dividend &
commitment to INCREASE dividends; (8) CASH FLOW & balance sheet strength solid to invest for future growth; (9) bought back 65 million shares in last qtr.; (10) company has strong discipline; more confident than ever for future success; (11) integrated resort company - critical mass (very broad mixture of components; #1 in
EBIDTA and won't change. Adelson says "we are different than other casino companies and built for that difference. Company has never worked in ANYTHING but a very competitive environment. Not making mistakes.
Sticking to CRITICAL MASS. Company is unlike WYNN (VIP emphasis), Stanley Ho (Galaxy) not used to competing, and MGM (with their huge investment in the "City")". (12) company is very diversified; struggling less than competitors; (13) growing dividend still on table (paid via cash flows which continue to grow thru diversity;
(13) more 'vibes' with something big to happen in Asia; (14) Parisian in 12 months or less; (15) comfortable
with 2x to 3x EBIDTA; excess cash flow to pay divi. Confident dividend will GROW. Adelson just like its
shareholders; the same interest in divi as its shareholders. Much more but this to serve as synopsis.
Sentiment: Strong Buy
Macau casino operators spiked after monthly gaming revenue in the world’s largest gambling hub fell in line with forecasts, and on reports China may move to support the city’s economy.
Beijing will introduce more policies this year to support the city amid an economic adjustment, Teledifusao de Macau reported, citing Li Gang, director of the Chinese government’s local liaison office.
The city’s casino-dependent economy has been suffering from a slowdown in China and an anti-corruption campaign, which has led to a slump in the gaming industry since mid-2014. The gambling downturn has dragged Macau’s economy to its weakest since 2011 as Chinese VIP gamblers continued to avoid the city amid the graft crackdown.
“Any potential measures to help Macau’s visitation could be a great boon for the industry, as casual gamblers are now becoming the key pillar of the industry profits in the midst of VIP weakness,” DS Kim, an analyst at JPMorgan Chase & Co., wrote in a note.
Government support could include allowing more mainland Chinese cities to offer individual visas, and introducing multi-entry permits, according to Kim.
I initiated a position in this stock at $2.43 back in March '09. I 'though' it was a bargain but when the financial system was crashing who knew? Today I have substantially more shares. I feel very confident in Sheldon who is a WINNER and the best CEO to head this terrific company. I suspect the dividend will be RAISED 10% this month (when earnings are announced). And I agree, this is a double from here by this time next year.
And this time NEXT year I suspect another dividend hike of 10%.
To my way of thinking, you have to go back and look at what made HUGE Macau gaming revenues possible in the first place. It had a lot to do with many, many whales ( many of whom amassed their fortunes through corruption) being able to skirt unenforceable restrictions to gamble at the highest levels with impunity...and those days are clearly over, probably never to be seen again, and that's fine for the long haul.
The future for Macau is especially bright for the simple reasons that 1. Chinese love to gamble more than any other culture in the world and there are millions of well to do Chinese, 2. Macau keeps adding classy IRs to accommodate the masses, 3. Infrastructure improvements continue to make it easier to get to Macau from central China cities. So, unless the "reprehensible" Chinese government bans gambling entirely (not likely - it would be like our government trying to ban all football, baseball, and basketball), Macau will have an almost infinite stream of customers....granted, not whales, but good customers nonetheless. If what we have now is the "new normal", I see no reason why that can't improve by at least 5% per year for a LONG time. My biggest concern is the political climate over there when concessionaire licenses begin to be renewed (or not) in 4-5 more years. Good luck to longs.
Of the 500-plus regular participants at the freeforums site, there are only a few who are currently bearish on LVS. Of the 4 regular posters on this board (not counting this clown or the dozen or so regular spammers here), there is only one that actually posts coherently (dabahr), and nobody's seen him in weeks.
1. Freeforums is not a person, as this guy would suggest. It's a board with hundreds and hundreds of users.
2. Freeforums does not require a subscription, as this guy would suggest. It's free for anyone to use.
3. Most importantly, freeforums is policed for abusers, which is why this guy is here, and not there.
You're like Donald Trump and Hillary Clinton. You think if you scream a lie loud
enough and often enough that people will believe you.
There is no 'subscription' at freeforums. Anybody can participate there for free.
That's what's wrong with wide-open boards like these. People can say
anything, even if it's total lunacy like this creep.
In this rare article, by a Macau professor, he pointed out the most probable cause of GGR falling...
Anti-corruption, china falling, unionPay, World soccer, were all fluke.
The one and only assignable cause was the collapse of a junket network called "Yellow Mountain" 黄山.
Aggravated by visa restriction.
He supports his theory by correlating with the timeline, and local pundits.
He described how the 'yellow maintain' network was formed by mainland investors.
When bad debts overwhelmed, investors' confidence collapsed, so did the network.
It is probable the VIP market is lost forever.
But fortunately, as Macau government and casino operators join hands, a new "baseline" can evolve.
This baseline is what present day Vegas, with much of diversification,
In fact, Cotai is already built on the baseline for several years now.
Going forward, as long as the govern would not fall prey to union activists and gangsters,
the chance of recovery is high.
for detailed article, go read Macaudaily Chinese, Sunday,,,